Digital Media Solutions, a portfolio company of Canadian private equity firm Clairvest Group, has agreed to merge with Leo Holdings Corp, a U.S.-based special purpose acquisition corporation. No financial terms were disclosed. The deal will give Digital Media Solutions a listing on the New York Stock Exchange. Based in Clearwater, Florida, DMS is a martech company.
TORONTO, April 23, 2020 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today announced that Digital Media Solutions Holdings, LLC (“DMS”), a portfolio company of Clairvest Group Inc. and Clairvest Equity Partners V (collectively, “Clairvest”), has entered into an agreement to combine with Leo Holdings Corp. (NYSE: LHC) (“Leo”), a publicly traded special purpose acquisition company. Immediately following the closing of the proposed transaction, Leo intends to change its name to Digital Media Solutions, Inc. (“New DMS”). The current DMS executive management team will continue to lead New DMS, which is expected to trade on the New York Stock Exchange.
Should the transaction close on contemplated terms, Clairvest will receive cash proceeds in the transaction but will also retain a significant continuing equity interest in New DMS. Clairvest’s percentage ownership is dependent upon the number of Leo Class A ordinary shares that are redeemed by Leo’s public shareholders in connection with the proposed transaction. Clairvest will continue to have representation on the New DMS board of directors.
Clairvest’s and the DMS management team’s obligation to consummate the transaction is subject to, among other things, the delivery by Leo of a minimum cash amount. There can be no assurance that the transaction will be consummated.
Clairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $2.4 billion of capital under management. Clairvest invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in owner-led businesses. Under the current management team, Clairvest has initiated investments in 51 different platform companies.